Nebraska sues GM over data collection, says customer info was unlawfully sold

LINCOLN, Neb. (KLKN) — Nebraska is suing General Motors, accusing it of deceptively collecting and selling customer data.

Attorney General Mike Hilgers filed the lawsuit Tuesday in Lancaster County District Court.

It alleges that since at least 2015, GM has installed systems in its vehicles that track speed, seat belt usage and other driving habits.

The company then sold that information to data brokers, the suit says, who used it to create “Driving Scores.”

Finally, those scores were sold to insurance companies to make decisions on rates and coverage.

The Attorney General’s Office said GM never told its customers that their data would be sold and could be used against them.

The data was collected through OnStar programs and GM mobile apps.

And Hilgers said GM misled customers into thinking that enrolling in OnStar was necessary to use basic safety features.

A GM spokesperson said in a statement, “We remain committed to protecting consumers’ privacy and will conduct a review of the complaint.”

The lawsuit alleges that the company’s actions violated the Nebraska Consumer Protection Act and Uniform Deceptive Trade Practices Act.

“Nebraskans deserve to work with companies that are truthful and honest about what they are doing,” Hilgers said in a press release. “That is not what happened here, and we filed this lawsuit because one large company decided that it wouldn’t honestly tell Nebraskans that their data was going to be used to impact their insurance rates. This is wrong. Our office will hold companies that mislead Nebraskans accountable, no matter how large.”

The state wants the court to order GM to pay $2,000 for each violation of the Consumer Protection Act.

Plus, the lawsuit asks for restitution to be paid to each affected Nebraskan.